Plywood Disrributors Stqrt Unique Adverfising Plon to Boosf Sqles by Reroil Deqlers

National plywood distributors are to embark upon a revolutionary merchandising plan of local retail advertising intended to maintain sales at the record of 100 million feet a rveek and further expand n-rarkets. The plan, rvhich is to create as much as $500,000 for sales promotion unique to building materials, rvas voted at tl-re national convention of National'Plyrvood Distributors Association. The panel jobbers timed their annual meeting rvith the fir plyu'ood Golden Jubilee in late June at Portlancl, Oregon.

Through the distributors' associzrtion a new non-profit corporation has been formed, knorvn as Jobbers ply,"r,oocl I)romotional Fund, Inc. M. C. Davidson, president of llouston (Texas) Sash & Door Co., is president of the neu' organization.

The new advertising, which will be aimed at stimulating retail sales of fir plywood and thereby directly benefit retail lumber dealers, will be financed solely by distributors through paying an extra 15 cents on each thousand feet of plywood when purchased from mills. Since distributors sell more than g}o/s of all fir plywood, the fund could easily amount to a half million dollars with full participation.

Monies rvill be paid into the fund starting September 1, 1955. Just horv quickly campaigns rvill start after that has not been determinecl. Already more than 300 distributing warehouses have agreed to particiltate, and the progranr 'w'as rvell received by manufacturers l'hen presented to ther.n ezrrlier in the vear. Although clistributors t'ill pay the cost, plyu'ood mills will have a part through issrring menlo invoices to distributors for the additional 15 cents on all purcl.rzrses.

I)aviclson explained, follou'ing unanirnous adoption of the plan at the annual meeting, that the advertising program u'ill supplement, not supplant, the continuous promotion by individual plyrvood manufacturers and by Douglas Fir Plyrvood Association. "We distribrrtors n,il1 be filling a void by adding retail advertising sin-rilar to that for automobiles and other brand products," he reportecl. Also unfolded at the national con.i'ention, rvhicl-r attracted 250 distributors and their u'ives, is a plan for ;r Jobbers Pl1'rvood Service Bureau, Inc., to serve as a clearing house of information on what manufacturers u,ant to make and what distributors can sell. A west coast office would be established, probably at lrortland, to maintain close communication rvith manufacturers. The service bureau would NOT be a buying office, nor u,ould it be a substitute for mill sales organizations. The office would develop a complete file of mill specification preferences and production capabilities; it would similarly accumulate information on specification requirements (needs) of distributors. It rvill perform the dual function of assisting distributors to obtain requirements ancl aiding mills to sell unusual or surplus items.

Both the advertising fund ancl tlre proposed service bureau are developments of NPDA, the trade association of jobbers. Hon'ever, participation in both the advertising endeavor and the service bureau is open to all distributing firms that perform such functions as carrying diversified plywood inventories, traveling salesmen and bearing credit risks.

Leonard E. Hall, vice-president of Lumber Products, Inc., Portland, Oregon, is the nerv president c-rf NPDA. lle succeeds Davidson, u'ho in reality is merely concentrating on the new prolnotional fund as president of that nerv organization. Earl G. Thuresson, president of Associated Door & Plywood Co., Chicago, is the new first vice-president of NPDA, and Theodore Merrill. president of the Interstate Lrrmberrnen's Supply Company, Nelvark, New Jersey, is second vice-president. Nen' directors include William F. Fahs, California Panel & Veneer Co., Los Angeles.

Charles E. Devlin is managing director. In his annual report of his first full year in that position, he advisecl jobbers that the road to continuing profits "lies in demand and sales." He had acknowledged the "perplexing situation in the jobbing business that has to do l'ith margins" for the functions performed.

Sales Rise Forecast

"To round up my solution of the problem through sales, I believe that demand for plyrvood will continue to increase although probably at a slorver rate. I predict also that the total production u'ill level off, despite the building of new plants," Devlin said.

Directors of the nerv Jobbers Plywood Promotional F'und include Don McCaughey, Arizona Milhvork Co., Phoenix; Emil J. Kochton, Kochton Plyrvood & Veneer Co., Chicago; \\rilliam H. Hunt, United States Plyrvood Corp., New York; S. \A/. White, Georgia-Pacific Plywoocl Co., Olympia, Wash., and V. A. Breitenbncher, Roddis Plyrvood Corp., Marshfield, Wisc.

Business meetings at the NPDA convcntion centered (Continued on Page 47)

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